CALGARY, April 3 /PRNewswire-FirstCall/ - The Westaim Corporation today announced that it plans to pursue strategic investment opportunities designed to maximize the value of the Company's strong balance sheet and non-cash resources. To implement this strategy, Westaim has entered into a management services agreement (the "MSA") with Goodwood Management Inc. ("Goodwood"), an affiliate of Goodwood Inc., to manage the day-to-day affairs of the Company and to present strategic investment opportunities for the Board of Directors to consider.
In addition, the Company announced that Cameron MacDonald has been appointed President and CEO of Westaim. He replaces Drew Fitch, who will continue to advise the Company during the transition phase.
"On behalf of the Board, I want to thank Drew Fitch for his many years of service and more recently for his work monetizing the Company's non-core assets that have brought us to this exciting new phase for Westaim," said Ian W. Delaney, Chairman of Westaim. "This new agreement with Goodwood is expected to present many new opportunities for the Company to consider in order to best utilize the assets and resources of Westaim."
"Our strategy will be to fully leverage both our investment resources and our significant experience and expertise to increase shareholder value," said Mr. MacDonald. "We look forward to working with the Board as we actively pursue new investment opportunities for Westaim."
Goodwood Inc., as portfolio manager to certain investment funds, exercises control or direction over an aggregate of 18,747,000 common shares of the Company ("Westaim Shares"), which represents approximately 19.9 per cent of the issued and outstanding Westaim Shares. Accordingly, the execution of the MSA constituted a related party transaction for the Company for the purposes of Multilateral Instrument 61-101 - Protection of Minority Shareholders in Special Transactions ("MI 61-101"). The decision to enter into the MSA was made by the independent directors of the Company who also determined that the transaction was exempt from the valuation and minority approval requirements of MI 61-101.
About Westaim
The Westaim Corporation invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim holds a 75 per cent interest in NUCRYST Pharmaceuticals Corp. . Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.
This news release contains forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and Westaim can give no assurance that these expectations are correct. Various factors could cause actual results to differ materially from those projected in such statements, including but not limited to statements regarding the availability of new opportunities to Westaim and the enhancement of shareholder value. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. Accordingly, readers are advised not to place undue reliance on forward-looking statements, and should not rely on this information at any date other than the date of this news release. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
CONTACT: Cameron MacDonald, President and Chief Executive Officer, The
Westaim Corporation, (416) 203-2022, info@westaim.com